What is the main purpose of "sales ratio studies"?

The main purpose of sales ratio studies is to compare assessed values to sale prices. This process involves analyzing the relationship between the market sales of properties and their assessed values determined for taxation purposes. By doing so, assessors can identify whether properties are being assessed fairly and accurately in relation to their actual sale prices.

Through sales ratio studies, assessors can evaluate if the assessments in a municipality align with current market values, ensuring equity among taxpayers. If there are inconsistencies, it may prompt reassessments or adjustments to better reflect true market conditions. This analysis is crucial for maintaining fairness in property taxation, as it directly impacts how properties are valued for tax purposes and helps to reduce potential disparities in tax levies.

The other options, while they may relate to real estate and property analysis in different ways, do not capture the core intent of sales ratio studies as effectively as the comparison of assessed values to sale prices.